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PVC CABLES 1. INTRODUCTION Low voltage copper conductor PVC cables are extensively used for domestic home appliances wiring, house wiring and internal wiring for lighting circuits

in factories, power supply for office automation, in control,

instrumentation, submarine, mining, ship wiring applications etc. due to its high tensile strength, superior conductivity, better flexibility and ease of ting.

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MARKET POTENTIAL Demand of domestic electric cable is bound to increase firstly, due to ambitious programme for electrification and house building secondly, due to renovation job as old cable has to be removed to avoid any short circuit due to ageing with new advanced cable of high conductivity in given size with perfect insulation against any electric fault. Not with standing the bulk of the demand is met by large scale unit or multinationals manufacturing these product but due to cheaper rate of production by small scale unit there is always scope for small scale unit.

Basis and Presumptions i) The basis for calculation of production capacity has been taken on single shift basis on 75% efficiency. ii) The maximum capacity utilization on single shift basis for 300 days a year. During first year and second year of operations the capacity utilization is 60% and 80% respectively. The unit is expected to achieve full capacity utilization from the third year onwards. iii) The salaries and wages, cost of raw materials, utilities, rents, etc. are based on the prevailing rates in and around Imphal. These cost factors are likely to vary with time and location. iv) Intrest on term loan and working capital loan has been taken at the rate of 18% on an average. This rate may vary depending upon the policy of the financial institutions/agencies from time to time.

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v) The cost of machinery and equipments refer to a particular make / model and prices are approximate. vi) The break-even point percentage indicated is of full capacity utilization. vii) The project preparation cost etc. whenever required could be considered under pre-operative expenses. viii) The essential production machinery and test equipment required for the project have been indicated. The unit may also utilize common test facilities available at Electronics Test and Development Centres (ETDCs) and Electronic Regional Test Laboratories (ERTLs) and Regional Testing Centres (RTCs).

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IMPLEMENTATION SCHEDULE The

major

activities

in

the

implementation of the project has been listed and the average time for Period implementation of the project is estimated at 12 months: Sl. Activity No. 1. Preparation of project report 2. Registration and other formalities 3. Sanction of loan by financial institutions 4. Plant and Machinery : a) Placement of orders b) Procurement c) Power connection/ Electrification d) Installation/Erection of machinery/Test Equipment 5. Procurement of raw materials 6. Recruitment of Technical Personnel etc. 7. Trial production 8. Commercial production

(In Months) 1 1 3 1 2 2 2 2 2 11 12

Notes 4

1. Many of the above activities shall be initiated concurrently. 2. Procurement of raw materials commences from the 8th month onwards. 3. When imported plant and machinery are required, the implementation period of project may vary from 12 months to 15 months.

TECHNICAL ASPECTS Process of Manufacture

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Copper conductor (wire) of the required size is fed into the Extruder where in PVC is coated on the wire to the specified thickness. The extruded wire after ing through the cooling tank is coiled on the take off system. The wire is coiled into the length of 100 meters and tested as per IS specification. Insulation is strictly as per National and International specification. PVC cables are available as Thermoplastic dielectric. PVC cables use PVC compound that takes care of overload and short circuit currents with both coarse and fine protection systems. Laying up: Cores are tested on line during production both for physical and electric characteristic. For multi core cables, cores are laid up on latest laying machine, equipped with sector correction equipments. Insulation: Laid up cables are provided with insulation of high quality PVC polymer which is softer than outer sheath and are compatible with temperature rating of the cables. Outer sheath: Cables are provided

with

PVC/polymer outer sheath ST1 with various characteristics of sheathing compounds. General purpose sheathing compound High Temp. Resistant Compound (HR) Fire Retardant Low Smoke Compound (FRLS) ICE 383 ASTM - 2843

ST2 ICE 754 Part I ICE 332 Part I and III

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ASTM - 2863 1. Installation to bear thermal and thermo-mechanical stresses at continuos normal and short circuit temperature condition. 2. Complete protection against most forms of electrolytic and chemical corrosion. 3. A non-hygroscopic insulation almost unaffected by moisture. 4. Non-migration of compound permitting vertical installation. 5. A tough and resilient sheath with excellent fire retarding qualities. 6. Good ageing characteristics 7. Not affected by vibration. 8. Reduce internal stress and low dielectric loss. 9. Higher current and short circuit current rating.

Tests Cables are manufactured and undergo the following Tests: 1. Conductor resistant test 2. Thickness of thermoplastic and elastomeric insulation and sheath 3. Tensile strength and elongation at break of thermoplastic and elastomeric insulation and sheath. 4. Thermal ageing in air. 5. Shinkage Test. 6. Ozone resistant Test 7. Heat shock Test. 8. Hot deformation Test. 9. Bleeding and Bromming Test.

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10. Cold impact Test. 11. Water absorption test (electrical) 12. Environmental stress cracking test Application Type/Size Conductor: plain Options Heavy Duty

Single core with three/seven annealed/stranded

Domestic Wires for House Wiring, Power supply

Insulation:

PVC/HR

strands PVC insulated copper and

PVC/FR PVC/ conductor as per BS2004 : FRLS PVC/zero

distribution for houses and 1961 other construction needs

Halogen Colour: Red/ Yellow/Blue/Green/Gre

Size: 1/18, 3/22, 3/20, 7/22, y

7/20, 7/1 87/16, SWG upto 37/14-LP India having acceded to the Montreal Protocol in September 1992, the production and use of Ozone Depleting Substances (ODS) like Chlorofluore Carbon (CFCs), Carbon Tetrachloride, Halons and methyl Chloroform etc. need to be phased out immediately with alternative chemicals/solvents. A notification for detailed Rules to regulate ODS phase out under the Environment Protection Act, 1986 have been put in place with effect from 19th July 2000.

Energy Conservation With the growing energy needs and shortage coupled with rising energy cost, a greater thrust in energy efficiency in industrial sector has been given by the Government of India since 1980s. The Energy Conservation Act, 2001 has been enacted on 18th August 2001, which provides for efficient use of energy, its 8

conservation and capacity building of Bureau of Energy Efficiency created under the Act. The following steps may help for conservation of electrical energy: i) Adoption of energy conserving technologies, production aids and testing facilities. ii) Efficient management of process/manufacturing machineries and systems, QC and testing equipments for yielding maximum Energy Conservation. iii) Optimum use of electrical energy for heating during soldering process can be obtained by using efficient temperature controlled soldering and de-soldering stations. iv) Periodical maintenance of motors, compressors etc. v) Use of power factor correction capacitors. Proper selection and layout of lighting system; timely switching on-off of the lights; use of compact fluorescent lamps wherever possible etc.

FINANCIAL ASPECTS 9

A. Fixed Capital (i) Land and Building (per month) 500 Sq. Meters Rented @ Rs. 20 Sq. Meter (ii) Machinery and Equipments (a)

Production

Units

(Rs.) 10,000

Sl. Qty.

Description No. 1. Laying machines, equipment with sector correction equipments 2. PVC Extruder and wire coating Machine 65 mm complete with cooling through supply stand

Value (Rs.)

1

35,000

1

5,00,000

Sl. Description Qty. No. 1. Continuous spark tester 1 0-11 kv 2. Micrometer 0.25 mm 1 LC 01 3. Travelling Microscope LC 1 0.001 Magnification 10 X 4. Chemical Balance 1 0-200 gms, Least measure 0.1 Mg. 5. Double Kelvin Bridge 1 upto 5 Ohm least count _6 1 x 10 6. Tensile testing machine 1 Cap. Range 50-100-500 kg 7. Electrically heated 1 thermostatically controlled Air Cooled Oven, 2 Size 450 x 450 mm Temperature range O upto 200 + 1 C

Value (Rs.) 15,000 4,000 5,000 2,000 10,000

35,000 15,000

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8. Ageing oven fitted with vertical tubes 9. Pressure Test Apparatus 10. Stamping Dies 11. High Voltage Test set AC 0-10 kV 12. Insulation Resistance Tester 500V DC 13. Hot water bath O Temp. 80 C + 2ºC 14. High Voltage Test Set DC 0-2 kV 15. Fire Resistance Test Total

1

5,000

1 1 1

1,000 1,000 10,000

1

2,500

1

7,500

1

4,000

C. Electrification and Installations (1) Cost of power conection (2) Electrification and Installation charges @ 10 per cent of cost of machines and equipments (3) Cost of office equipments etc. (iii) Pre-operative expenses Total Fixed Capital

1,25,000

10,000 72,500

50,000 20,000 8,77,500

B. Working Capital (i) Personnel Salaries and Wages No.

Salary

Total 11

(per

month)

Sl.

Designation No. (Rs.) (a) istrative and Supervisory Work Manager cum 1 Engineer Officer 1 Clerk/Typist 1 peon cum chowkidar 1 (b) Skilled/un-Skilled Supervisor 1 Skilled Worker 2 un-skilled Worker 4 Total (Salaries)

(ii)

Raw

(Rs.) 6,000

6,000

4,000 2,000 1,500

4,000 2,000 1,500

4,000 2,000 1,500 27,500

4,000 4,000 6,000

Rates

Value

Material

Including Packaging Requirements month) Particulars No. 1. Tinned copper wire 2. PVC compound (cable grade) 3. Polymer outer sheath compounds

(per Qty Sl. (Rs.)

(Rs.)

2MT

75,000/MT

1,50,000

3.5MT

50,000/MT

1,75,000

1MT

25,000/mt

25,000

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4. Packing materials (polythene film) 5. Packing Box Total

3,000

2/coil

6,000

3,000

2/box 3,62,000

6,000

(per month) (vi) Total Working Capital (for 3 Months) C. Total Capital Investment (i) Fixed Capital (ii) Working Capital (for 3 Months Basis) Total Machinery Utilization

13,62,000 8,77,500 13,62,000 22,39,500

Utilization of major machines is expected to be 80%. Financial Analysis (1) Cost of Production (per year) Total recurring cost Depreciation on machinery and equipment @ 10% Depreciation on office equipment @ 20% Intrest on total investment @ 18% Total

54,48,000 72,000 10,000 4,03,110 59,33,110

(1) Turnover (per year) (Rs.) Production of 36,000 coils of 100 meter each @ Rs. 200 per coil Turnover 36,000 × 200 = Rs. 72,000,00

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(2) Net Profit (per year) = Rs. 72,00,000- 59,33,110 = Rs. 12,66,890 (3) Net Profit Ratio = Net Profit per year × 100 Turnover (per year) = 12,66,890 × 100 72,00,000 = 17.59% = Net Profit per year × 100 Total investment = 12,66,890 × 100 22,39,500 = 56.57% (6) Break-even Point (i) Fixed Cost a) Total depreciation b) Rent c) Interest d) 40% of salary and wages e) 40% of other contingent expenses (excluding rent)

(Rs.) 82,500 1,20,000 4,03,110 1,53,600 1,92,000

Total

9,51,210

ADDITIONAL INFORMATION 14

a. The Project Profile may be modified/tailored to suit the individual entrepreneurship qualities/capacity, production programme and also to suit the locational characteristics, wherever applicable. b. The Electrical Technology is undergoing rapid strides of change and there is need for regular monitoring of the national and international technology scenario. The unit may, therefore, keep abreast with the new technologies in order to keep them in pace with the developments for global competition. and environment in which they are generated. The ISO 9000 defines standards for Quality Management Systems and ISO 14001 defines standards for Environmental Management System for acceptability at international level. The unit may therefore adopt these standards for global competition. c. The margin money recommended is 25% of the working capital requirement at an average. However, the percentage of margin money may vary as per bank's discretion.

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Addresses of Machinery and Equipment Suppliers 1. M/s. Dhiman Engineering Works 2535, Prem Narain Street, Churi Walan, Delhi-110006. 2. M/s. N S I C Limited (Marketing Divn.), Industrial Estate, New Delhi-110021. 3. M/s. International Plastic Engineers M-10, Street No. I, Indl. Estate, New Rohtak Road, New Delhi-110005. 4. M/s. Golden Engineering Industries 8797, Shidipura Crossing, Rani Jhansi Road, New Delhi-110005. 5. M/s. Boolani Engineering Corpn. Prabha Devi Indl. Estate, 402, Veer Savarkar Marg, Mumbai-400025. 6. M/s. Kolsite Industries 31, Shah Industrial Estate, Off. Veer Desai Road, Andheri West, P .O. Box No. 7368, Mumbai-58. 7. M/s. Brimco Plastic machinery Co. Ltd. Plot 55, Govt. Indl. Estate, Mumbai. 8. M/s. Rectifiers and Electronics WH-49, Mayapuri Indl. Area, Phase-I, New Delhi. 9. M/s. Automatic Electric Co. Ltd. Rectifier House, 570, Naigam Cross Road, Box_7103, Mumbai-400013. 10. M/s. Zaran Trading Agency Box_6657, Bandra, Mumbai-50, 16

11. M/s. BPL India Ltd. 304, Ashok Bhawan, Nehru Place, New Delhi-110024. 12. M/s. Toshniwal Bros. Pvt. Ltd. M.G. Road, Ajmer. 13. M/s. Blue State Ltd. Bhandari House, 91, Nehru Place, New Delhi. 14. M/s. Oriental Scientific Apparatus Workshop Jawahar Lal Nehru Marg, Ambala Cantt. - 133001. 15. M/s. Precision Scientific Equipments Works 26, Patel Road, S. P. Nagar, New Delhi-110002. Addresses of Raw Material Suppliers 1. M/s. National Organic Chemical Industries Ltd. Bank of Baroda Building, Parliament Street, New Delhi. 2. M/s. Shriram Chemical Industries Ltd. Shriram Nagar, Kota. 3. M/s. Calico Plastics Ltd. Anil Chambers, Mumbai. 4. M/s. Indian Aluminium Co. Ltd. United Commercial Bank Bldg., Parliament Street, New Delhi.

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